The Story line:: Scott Equipment Organization isinvestigating various combinations of short- and long-term debt in financingassets. Assume the organization has decided to employ $30 million in currentassets and $35 million in fixed assets in its operations next year, providedthe level of current assets, anticipated sales, and EBIT for next year are $60million and $6 million, respectively. The organization’s income tax rate is40%. Stockholders’ equity will be used to finance $40 million of assets, withthe remainder financed by short- and long-term debt. The organization isconsidering implementing one of the policies in the diagram.TheProject needed: Writea 1,400-word paper in which you evaluate profitability versus risk trade-offsof these policies. Would you rate them low, medium, or high with respect toprofitability? Would you rate them low, medium, or high with respect to risk? Format your paper consistent with APAguidelines.I have done the first part below Ineed the1400 word paper completed Week 4 – ScottEquipment Organization PaperDeterminethe following for each policy:· Expectedrate of return on stockholders’ equity· Networking capital position· CurrentratioThe expected rate of return onstockholders’ equity fluctuates from 6.89%, 6.81%, and 6.73% for theAggressive, moderate, and conservative policies respectively. The net workingcapital position reflects vast differences from 6 million to 18 million.Finally, the current ratio ranges from 5:4, 5:3, and 5:2 for the Aggressive,moderate, and conservative policies respectively.  Financial Policy    Expected Rate of Return on Stockholders’  Equity    Net Working Capital Position    Current Ratio    Aggressive   (large amount of short-term  debt)     6.89%    6  million    5:4    Moderate   (moderate amount of short-term  debt)     6.81%    12  million    5:3    Conservative  (small amount of short-term  debt)     6.73%    18  million    5:2    Profitability    High    Medium    Low    Risk    Low    Medium    High  Evaluateprofitability versus risk trade-offs of these policies. Would you rate themlow, medium, or high with respect to profitability? Would you rate them low,medium, or high with respect to risk?  The aggressivepolicy is rated high since the return on stockholders’ equity is higher, mediumin moderate, and low in conservative for the same reasoning. The liquidity isless in aggressive and therefore rated as low, more liquidity in moderate andconservative as compared to aggressive. Based upon the EAT and return onequity, the aggressive policy is recommended.

Copy of Ch06 P14 Build a Model.xlsxHEre is the next one I can't remember if I gave it to you or not been bad week as you know. Anyway I would need this by monday Aug 5th ok please and thank you

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisions? If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? Explain your reasoning. What are two techniques that you could use to develop a rough estimate for each division’s cost of capital? Your initial response should be 200 to 250 words.No more than 300 words